Trip.com Group Limited has posted impressive first-quarter results for 2025, riding a wave of post-pandemic travel enthusiasm that continues to fuel the global tourism sector. The online travel giant reported revenue of $1.73 billion for Q1, marking a 28% increase compared to the same period last year. This growth significantly exceeded Wall Street analysts’ expectations of $1.58 billion.
Net income reached $413 million, representing a robust 45% year-over-year increase. This translates to earnings per share of $0.62, comfortably surpassing the consensus forecast of $0.47. The company’s adjusted EBITDA also showed remarkable improvement, climbing to $628 million from $431 million in Q1 2024.
“We’ve witnessed exceptional momentum across all our major markets,” said Jane Sun, CEO of Trip.com Group, during the earnings call. “The continued recovery in international travel and growing domestic demand in Asia have created perfect conditions for our expansion strategy.”
Hotel bookings emerged as the standout performer, with revenue from accommodation reservations increasing by 32% year-over-year. International hotel bookings grew even more impressively at 47%, highlighting the return of cross-border travel confidence. The average daily rate for hotel bookings rose by 8%, reflecting travelers’ willingness to spend more on quality accommodations.
Transportation ticketing services, including flights and train bookings, generated $587 million in revenue, up 24% from the previous year. The company noted particularly strong growth in international flight bookings, which increased by 38% compared to Q1 2024. Domestic transportation services in China grew at a more modest but still healthy rate of 18%.
Trip.com’s packaged tour offerings also performed well, with revenue climbing 26% to $213 million. The company has been expanding its high-margin luxury travel packages, which now account for approximately 22% of total package tour revenue, up from 17% a year ago.
User engagement metrics were equally impressive. Monthly active users across Trip.com’s platforms reached 298 million during Q1, representing a 19% increase year-over-year. Mobile bookings now account for 86% of total bookings, up from 82% in the same period last year.
The company has made significant inroads in international markets, with revenue from regions outside mainland China growing by 41% year-over-year. This outpaced domestic growth of 22%, highlighting the success of Trip.com’s global expansion strategy. International business now represents 35% of total revenue, compared to 30% a year ago.
“Our investments in artificial intelligence and personalization are paying off,” explained James Liang, Executive Chairman of Trip.com Group. “We’re seeing higher conversion rates and increased customer lifetime value as our recommendation systems become more sophisticated.”
The company’s AI-powered travel assistant, introduced last year, has been used by over 78 million customers to date. Trip.com reports that users who engage with the AI assistant spend an average of 23% more on their bookings compared to those who don’t.
Operating margins improved significantly, reaching a record 31.2% for the quarter, up from 25.8% in Q1 2024. This improvement stems from both revenue growth and the company’s ongoing cost optimization initiatives. Technology expenses as a percentage of revenue decreased from 12.7% to 10.5%, despite increased investments in AI and personalization.
Looking ahead, Trip.com provided an optimistic outlook for Q2 2025, projecting revenue growth of 25-28% year-over-year. The company expects continued strength in international travel, particularly within Asia and between Asia and Europe.
“While we’re keeping an eye on macroeconomic uncertainties, consumer interest in travel remains robust,” said Cindy Wang, CFO of Trip.com Group. “Our diverse geographic footprint and service offerings help insulate us from regional fluctuations.”
The company also announced an expansion of its share repurchase program, authorizing an additional $1 billion in buybacks over the next 12 months. This comes as Trip.com has already completed $700 million in share repurchases since January 2024.
Analysts have responded positively to the results. According to data from Yahoo Finance, several major investment banks have raised their price targets for Trip.com stock following the earnings release. The average price target now stands at $68, representing a potential upside of approximately 15% from current levels.
However, some analysts raised questions about potential challenges ahead. “While Trip.com’s performance is undeniably strong, we’ll be watching closely for signs of consumer spending pullback in key markets like China,” noted Li Wei, a travel sector analyst at Morgan Stanley.
Trip.com’s successful quarter comes amid a broadly positive environment for online travel companies. The United Nations World Tourism Organization recently projected that global international tourist arrivals in 2025 will exceed pre-pandemic levels by approximately 8%, providing a favorable backdrop for continued growth in the travel sector.
As border restrictions continue to ease and traveler confidence grows, Trip.com appears well-positioned to capitalize on the ongoing travel resurgence. The company’s investments in technology and international expansion seem to be creating a solid foundation for sustainable growth in an increasingly competitive global travel market.
